Guess? Earnings Preview

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Guess? (NYS: GES) came in under analysts' estimates last quarter, but now has a chance to fix things this quarter. The company will unveil its latest earnings on Wednesday, March 14. Guess? designs, markets, distributes, and licenses a leading lifestyle collection of contemporary apparel and accessories for men, women, and children.

What analysts say:

  • Buy, sell, or hold?: Half of analysts think investors should stand pat on Guess?. While analysts still rate the stock a hold, they are a little more optimistic about it compared to three months ago.
  • Revenue forecasts: On average, analysts predict $778.8 million in revenue this quarter. That would represent a rise of 2.9% from the year-ago quarter.
  • Wall Street earnings expectations: The average analyst estimate is earnings of $1.05 per share. Estimates range from $1.00 to $1.09.

What our community says:
CAPS All-Stars are solidly supporting the stock, with 94.1% awarding it an outperform rating. Most of the community concurs with the All-Stars, with 91.4% granting it a rating of outperform. Even with a robust four out of five stars, the company's CAPS rating falls a little short of the community's upbeat outlook.

Management:
Guess?' income has fallen year over year by an average of 2.3% over the past five quarters. Revenue has now gone up for three straight quarters.

Now, a look at how efficient management has been at running the business. Traditionally, margins serve as an illustration of how efficiently a company captures portions of sales dollars. The company's net margins are down on a year-over-year basis for the last three quarters. Net margins reflect what percentage of revenue becomes profit. See how Guess has been doing for the last four quarters:

Quarter

Q3

Q2

Q1

Q4

Gross Margin

43.2%

44.3%

42.1%

44.4%

Operating Margin

15.1%

13.8%

12.0%

19.1%

Net Margin

10.3%

9.0%

7.2%

13.7%

For all our Guess?-specific analysis, including earnings and beyond, add Guess? to My Watchlist.

The Motley Fool owns shares of Guess?. Motley Fool newsletter services have recommended creating a put write position in Guess?.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Earnings estimates provided by Zacks.

At the time this article was published

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